Absa Fund Managers plans to close its R80-billion money market fund, the biggest in the country and one of the oldest.
The closure of the fund is a winding-up process that will see Absa Fund Managers liquidate the fund and pay the proceeds to its investors. Investors have the choice of investing in a new Absa Prudential Money Market Fund, also managed by Absa Fund Managers, or simply having the money deposited into their bank accounts. Alternatively, Absa will create an investment bank account with the same account number to which their AMMF investment will be transferred.
The AMMF is possibly a victim of its own success. Designed slightly differently from conventional unit trust funds, it was available through the Absa branch network as well as online channels and conventional unit trust platforms.